Malaysian Economy ADS504

TABLE OF CONTENT

Content Page

1.0 Article Information 2

2.0 Article Review 3

3.0 Reference 5

4.0 Appendices 6

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 Malaysian Economy ADS504

1.0 ARTICLE INFORMATION

Title: Eradicating Rural and Urban Poverty

Author: Musalmah Johan,

Senior Research Officer Malaysian Institute of Economic Research (MIER)

Date of Publication: 3 October 2005

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 Malaysian Economy ADS504

2.0 ARTICLE REVIEW

The main issue of this article is the factors that contributed to the poverty
eradication in Malaysia especially rural and urban area. The factors were narrowed to
economic growth, National Economic Policy (NEP), National Development Policy (NDP)
and the cooperation by NGO. The article discussed based on the Malaysian
achievement which able to decreased poverty incidence amount 47.3% from 1970 until
2002. The strength of this article is the author does provide other important related
information such Poverty Line Index which will help much the reader to understand
more on the poverty measurement. This article also has its strength as each of the
statement of poverty situation comes with statistical proves together with the sources.
This made this article be more convincing to be belief. Moreover it’s also has
acknowledge the success of poverty eradication in Malaysian in the last paragraph. The
acknowledgment of this success is important to give more understanding on the
economic development of Malaysia.

However, this article also has several weaknesses due to some matter has not
been truly explored. The weakness of this article is it seemed not neutral as the authors
were only focusing on the success of the strategies and less focused on the problem
and challenges occur. It failed to dig on the problem and challenge in poverty
eradication strategies which does happen such in NEP, where the rural and unskilled
labor has been ignored. The NEP seem focusing more to development and these group
been ignored as there is no backup plan for them. For example, the farmers in Sabah
were threatened by land development. (Page18, Jomo K.S., the New Economic Policy
and Interethnic Relations in Malaysia) other challenges also not been explain and state
such the issue arises in the process of collecting data for research on poverty
eradication where there is a controversy on the poverty data (Page5, Anoma
Abhayaratne, Economy growth and poverty: lesson from Malaysia experience)

In this article, it mentioned the poverty incidence has largely dropped by 47.3
percent in 3 decades. However the author, failed to delve on to the trend of poverty
detailed. The poverty trend in this 30years back was fluctuated. The economic crisis
had happen in 1997 which cause increased in the incidence of poverty in 1998 and
1999 and then decreased again until 2004, (EPU, incidence of poverty in Malaysia
1957-2004, The Malaysian Economy in figure). In addition, the author also failed to
explore on other related measurement such ethnicity, employment incidence as well as
regional based poverty incidence, which this matter always been related to each one.
For instance, poverty was clearly related to the ethnicity in the early of 70’s thus, this is
important matter to be discussed, as this is the main cause of effort advancement in
eradicating poverty and also the reason for establishment of NEP after the post
elections riots in May 1969.

Moreover the explanation on the factor itself was too general and gives
little understanding on the strategies done by government and also the economic
situation. The explanation of the factor should more detail to enhance understanding of

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 Malaysian Economy ADS504

issue. For instance, in the first factor, Economic growth, the author has include how
economic growth has provide employment that helping in eradicating poverty, other
element such establishment of privatization and political stability as well as social
indicator such infrastructure, electricity and other improvement should also included.
This is to show significant relation between economic growth and poverty eradication to
give more understanding on how economic growth and national development do helps
in reducing the poverty. In the second factor, the missing scope in NEP is the program
of First Outline Perspective Plan (OPP1) in 1970-1990 and Second Outline Perspective
Plan (OPP2) 1991-2002, which associated with poverty eradication in NEP. Also, the
NEP explanation in this article has ignoring the history behind the NEP establishment
which is the riots in May 1969. If the history of riots mention and the reason are stated,
therefore reader will more understand on why do the NEP Seem to be pro-bumiputera.
This is important to mention to avoid speculation on government has play bias in
resources distribution. Where, the main focused of NEP is to “poverty eradication
regardless of race and eliminate the identification of race with economic function”, as
the economic gap between race was the one that causing riots may 1969.
Despite all the weaknesses, overall, the author’s analysis on what has
motive the poverty eradication do gives a general understanding of the economic
development in Malaysia.

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 Malaysian Economy ADS504

3.0 REFERENCE

Musalmah Johan. (2005, October 3). Eradicating Rural and Urban Poverty.

Retrieved from Malaysian Institute of Economic Research Website:

http://www.mier.org.my/newsarticles/archives/pdf/musalmah3_10_2005.pdf

Jomo k.s., (September 2004). The New Economic Policy and Interethnic Relations In

Malaysia. Retrieved from Google Search, Website:

http://web3.bernama.com/ssig/kcent/material/10985.pdf

Anoma Abhayaratne. (). Economic Growth and Poverty Reduction: Lessons from the

Malaysian Experience. Retrieved from Google Search, Website:

http://cmsad.um.edu.my/images/fep/doc/2004%20Pdf/FEA-WP-2004-013.pdf

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 Malaysian Economy ADS504

4.0 APPENDICES

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